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Investing.com-- Nvidia (NASDAQ:NVDA) has placed fresh orders for 300,000 of its H20 AI chips with contract manufacturer Taiwan Semiconductor Manufacturing Co (TSMC) (TW:2330) amid rising demand from China, Reuters reported on Tuesday, citing unnamed sources.
The move comes after the Trump administration earlier this month allowed Nvidia to resume sales of the H20 to Chinese customers, reversing an April ban aimed at restricting advanced AI chip access.
The new orders with TMSC would add to the existing inventory of 600,000 to 700,000 H20 chips, the report said. The company sold around 1 million H20 chips in 2024, the report added, citing data from SemiAnalysis.
Developed specifically for China, the H20 lacks the computing power of Nvidia’s flagship H100 or Blackwell chips, but remains vital in the AI race. Nvidia CEO Jensen Huang said in Beijing this month that production could take nine months to resume.
The U.S. Commerce Department has yet to approve export licenses, Reuters said. The H20’s return comes as Washington negotiates with Beijing over critical minerals and as lawmakers raise concerns over AI security.